Comments on: Guest post from a new investor looking for advice

By: Megan

Megan — Wed, 31 Dec 2008 03:58:05 +0000

Hey Bobbi,
I know I’m a little late, I just got back into town and am catching up on my reading :)

As for IRA’s the difference is how they are taxed. A Roth IRA is funded with money that you have already paid taxes on (take home pay) and when you withdraw it you will not be taxed. A regular IRA I am not as certain on, but I do know that you will get taxed when you remove the money at retirement. My suggestion is to go with a Roth if you meet the requirements (a financial specialist can tell you). Dave Ramsey is excellent at explainging it and you can find his list of recommended financial experts at his website: http://www.daveramsey.com. Mine didn’t charge anything for a consultation.

I’m with everyone else on paying off the debt and having an emergency fund, but you should make retirement a focus all year long- designate a certain amount and pay it to your account monthly like any other bill.

Sorry it’s so long, but this is a topic I love! I look forward to reading your blog!!!

By: Bobbi

Bobbi — Mon, 29 Dec 2008 15:02:17 +0000

Thanks girls! I will definitely pay off the card and then put the balance in savings.
Kacie, congrats to you and yours on a fine looking son. I am seriously thinking of starting a blog in the new year coming, so I will let you know. :) Thanks for the encouragement!

By: Kacie

Kacie — Mon, 29 Dec 2008 01:26:59 +0000

Bobbi, do you have an emergency fund? If not, I'd say put $1000 in the FBNO savings and leave it alone until an emergency pops up. Take the other $1000 and put it toward the card. If you already have at least $1k set aside for emergencies, I'd say pay off your credit card in full, put $400 in an IRA, and take $100 and buy yourself something you've been wanting. You CAN open a roth IRA with any amount. There is a maximum you can contribute each year -- something like $4k. I know it sounds a bit daunting, but its your future and you can't afford not to fund it! I'd definitely encourage you to start a blog. Blogging has helped me stay focused on saving money, and I've learned a lot from it! Be sure to let me know if you do start one, and I'll be one of your first readers. Kacie’s last blog post..Happy birthday to my baby!

By: Sarah F.

Sarah F. — Sun, 28 Dec 2008 19:14:26 +0000

I agree, pay the credit card off! And maybe put the rest in savings, or toward paying off the car loan. My $.02. Sarah F.’s last blog post..Best Christmas present ever: Card Three paid off!